The AAII Los Angeles Chapter presents...

"Changing Policy and Rising Rates: Good for Investors"

Discussed by:

Oliver PurschePresident, Gary Goldberg Financial Services

The presentation will focus on how investors should position their equity and bond portfolios for 2014 amidst slowly rising interest rates and Fed tapering. Oliver Pursche will explain which S&P sectors he expects to outperform and which sectors he is avoiding. He will also outline the risks of bond alternatives and discuss how investors receive returns from these investments.

As we begin 2014, the consensus appears to be that Fed tapering will lead to higher interest rates. While this may happen, Tim Gramatovich questions the sustainability of another significant move in rates in 2014, as the 10-year Treasury has already almost doubled in yield between May 2013 and year-end 2013. Countries that have no quantitative easing programs have lower yields on their government bonds and demand is likely to increase, constraining rates. Gramatovich sees the high-yield market as positioned well in this environment and this asset class deserves attention as a source of income. He expects that in 2014, active management in the high-yield market will be required.

Attend This Meeting and Learn...

Why interest rates will likely be constrained going forward

Why investors should pay more attention to high-yield asset classes

Why high-yield bonds and leveraged loans could very well outperform other fixed-income options

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